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INVESTMENTS
 
 

Investment objective

The specific investment objective for the Aon ERF is to achieve a crediting rate (net of all indirect fees) with a 0.5% out performance of the Consumer Price Index (CPI) over rolling three year periods.

This strategy aims to limit the probability of a negative return (net of all indirect fees) to one in any five years.

Asset allocation

Keeping the investment objective in mind, the following asset allocation is used to invest the Aon ERF assets:


Asset class Allocation
Australian shares 15.0%
International shares 15.0%
Australian fixed interest 36.0%
International fixed interest 24.0%
Cash 10.0%

Investment performance

The Aon ERF was established in December 2003. Net crediting rates for the past five years (after tax, investment and management fees) and the five year compound net crediting rate are given below. The net earning rate may not be the same as the rate credited to members because of the effect of charges by the Fund.

Furthermore benefits are not guaranteed and the value of a member’s investment may rise or fall. Please note that past crediting rates are not an indicator of future net crediting rates.


Year Actual net crediting rate
2009 -2.75%
2008 -6.8%
2007 3.8%
2006 3.5%
2005 6.2%
Compound average net crediting rate for five years to 30 June 2009 0.67% pa

 

Labour standards and environmental, social or ethical considerations are not taken into account by the trustee, and are not, to the knowledge of the trustee taken into account by investment managers of the investment strategies.